The benefits of an ageing population pot

THE AUSTRALIA INSTITUTE

The benefits of an ageing

population

Judith Healy

Australian National University

Discussion Paper Number 63

March 2004

ISSN 1322-5421

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The benefits of an ageing population

Table of Contents

Tables and Figures v

Acknowledgements vi

Summary vii

1. Introduction 1

1.1 Transition not crisis 1

1.2 Countering negative stereotypes 3

1.3 Population ageing 5

2. Personal development 9

2.1 Satisfaction with life 9

2.2 Active ageing 10

2.3 A healthier life? 13

3. Family and friends 18

3.1 Older people caring for older people 18

3.2 Providers of help to adult children 19

3.3 Grandparenting 20

4. Community 22

4.1 Volunteers 22

4.2 A law-abiding society 26

5. Public institutions 27

5.1 Ageing is not the main driver of health costs 27

5.2 Retaining older workers 30

5.3 Better off baby boomers 35

6. Conclusion 39

References 41

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The benefits of an ageing population

Tables and Figures

Table 1 Age composition of the population, estimates and projections 6

Table 2 Ten oldest countries, 2000 and 2050 (medium variant) 7

Table 3 Self-rated health, by age and sex, per cent 13

Table 4 Prevalence of mental disorders, per cent of age group 14

Table 5 Health risk factor trends among the older population 15

Table 6 Real growth rates for Commonwealth spending, per cent 29

Figure 1 Older people and their contributions to the nation 3

Figure 2 Personal Wellbeing and National Wellbeing Indices, per cent

satisfied by age group

10

Figure 3 Volunteer rates by age group, 1995, 2000 24

Figure 4 Median weekly hours of voluntary work, age and sex 25

Figure 5 Percentage of population aged 65 years and over and total

health expenditure as percentage of GDP by country

28

Figure 6 Labour force participation (full and part-time) by age and sex,

selected years

32

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Acknowledgements

I would like to acknowledge Dr Pamela Kinnear and Professor Sol Encel (Social Policy

Research Centre, The University of New South Wales) for their constructive review

comments. My thanks also to Richard Denniss and Dr Clive Hamilton from The

Australia Institute who greatly improved upon the clarity of my arguments and writing.

But in particular, I would like to thank my octogenarian parents, John and Betty Healy,

for providing me with positive role models for 'active and successful ageing'.